Author(s)

ChongHui Fu^1,2, XunChi Tang³, WenJun Wang⁴, Hang Cheng^1*

Affiliation(s)

¹Guangdong Medical University, Dongguan 523808, Guangdong, China.

²Shenzhen Yuntian Sustainable Science Research Center, Shenzhen 518000, Guangdong, China.

³South China Normal University, Guangzhou 51000, Guangdong, China.

⁴Shenzhen Gudah Applied Statistics Research Institute, Shenzhen 518000, Guangdong, China.

Corresponding Author

Hang Cheng

ABSTRACT

Global warming and the imperatives of low‐carbon development have driven the implementation of China’s carbon peak and carbon neutrality goals. This paper takes Shenzhen as a case study and constructs an analytical model from the perspectives of institutional economics, policy integration, and multi-level governance. Utilizing policy text analysis and qualitative research methods, it examines the linkage between the carbon trading market and the dual-control mechanism for carbon emissions. The findings indicate that the synergistic effect of market incentives and administrative regulation significantly promotes carbon reduction and provides valuable insights for low-carbon transformation. This study enriches the theoretical framework of carbon governance and offers decision-making guidance for China’s low-carbon transition, with substantial potential for both theoretical advancement and practical application in policy implementation.

KEYWORDS

Carbon trading; Dual-control mechanism; Shenzhen model

CITE THIS PAPER

ChongHui Fu, XunChi Tang, WenJun Wang, Hang Cheng. The integration mechanism between carbon trading market and dual-control of carbon emissions: a case study of shenzhen. Trends in Social Sciences and Humanities Research. 2025, 3(2): 37-44. DOI: https://doi.org/10.61784/tsshr3141.

REFERENCES

[1] Wen W, Su Y, Tang Y, et al. Evaluating carbon emissions reduction compliance based on 'dual control' policies of energy consumption and carbon emissions in China. Journal of Environmental Management, 2024, 367: 121990.

[2] Zhang Y, Li S, Luo T, et al. The effect of emission trading policy on carbon emission reduction: evidence from an integrated study of pilot regions in China. Journal of Cleaner Production, 2020, 265: 121843.

[3] Huang W, Wang Q, Li H, et al. Review of recent progress of emission trading policy in China. Journal of Cleaner Production, 2022, 349: 131480.

[4] Zhan C, de Jong M. Financing eco cities and low carbon cities: the case of Shenzhen International Low Carbon City. Journal of Cleaner Production, 2018, 180: 116-125.

[5] Ellerman AD, Marcantonini C, Zaklan A. The European Union emissions trading system: ten years and counting. Review of Environmental Economics and Policy, 2016.

[6] Fell H, Maniloff P. Leakage in regional environmental policy: The case of the regional greenhouse gas initiative. Journal of Environmental Economics and Management, 2018,87: 1-23.

[7] Yan J. The impact of climate policy on fossil fuel consumption: Evidence from the Regional Greenhouse Gas Initiative (RGGI). Energy Economics, 2021, 100: 105333.

[8] Zhang W, Li J, Li G, et al. Emission reduction effect and carbon market efficiency of carbon emissions trading policy in China. Energy, 2020, 196: 117117.

[9] Zhang M, Gregory-Allen RB. Carbon emissions and stock returns: Evidence from the Chinese pilot emissions trading scheme. Theoretical Economics Letters, 2018, 8(11): 2082-2094.

[10] Cheng S, Zhang J, Qi S. Analysis of the carbon allowance allocation and sectoral coverage in the carbon market under the new climate ambition: A case study in China. Climate Change Economics, 2022, 13(3): 2240016

[11] Lin B, Jia Z. Why do we suggest small sectoral coverage in China’s carbon trading market? Journal of Cleaner Production, 2020, 257: 120557.

[12] Ren X, Zhu L. Influence of allowance allocation events on prices in China’s carbon market pilots – an AR-GARCH-based analysis. Energy Sources, Part B: Economics, Planning, and Policy, 2020, 15(3): 157-171.

[13] Chen H, Peng X, Wang Z, et al. Research on decoupling relationship among energy consumption, carbon emissions, and economic growth under dual carbon goals in China. 2023 3rd Power System and Green Energy Conference (PSGEC). IEEE, 2023.

[14] Ma Z, Sun T. Study on measurement and driving factors of carbon emission intensity from energy consumption in China. Polish Journal of Environmental Studies, 2022, 31(4).

[15] Zheng H, Zhang C, Tang F, et al. Research on energy consumption “dual-control” policy adjustments impact and the mid-long term energy demand. 2023 IEEE 7th Conference on Energy Internet and Energy System Integration (EI2). IEEE, 2023.

[16] Haowei C, Xin-gang Z, Shuran H, et al. Can China’s energy quota trading impact the market performance and policy effects of carbon emissions trading? Journal of Renewable and Sustainable Energy, 2024, 16(4).

[17] Polemis ML, Fotis P. European Commission’s energy and climate policy framework. In Energy and Environmental Strategies in the Era of Globalization, 2019: 335-361.

[18] Zhu Z, Cheng L, Shen T. Spontaneous formation of evolutionary game strategies for long-term carbon emission reduction based on low-carbon trading mechanism, Mathematics, 2024, 12(19).

[19] Li H, Jin Z, Mei G. The carbon trading simulation analysis based on CGE model. Second International Conference on Sustainable Technology and Management (ICSTM 2023). SPIE, 2023.

[20] Skagen K, Boasson EL. Climate policy integration as a process: From shallow to embedded integration. Journal of Environmental Policy & Planning, 2024, 26(3): 279-294.

[21] Borenstein S, Kellogg R. Carbon pricing, clean electricity standards, and clean electricity subsidies on the path to zero emissions. Environmental and Energy Policy and the Economy, 2023, 4(1): 125-176.

[22] Scott J. Multi-level governance of climate change. CCLR, 2011, 5: 25.

[23] Bendlin L, Bendlin L. Local governments in European multi-level climate governance. In Orchestrating Local Climate Policy in the European Union: Inter-municipal Coordination and the Covenant of Mayors in Germany and France, 2020: 13-33.

[24] Di Gregorio M, Fatorelli L, Paavola J, et al. Multi-level governance and power in climate change policy networks. Global Environmental Change, 2019, 54: 64-77.

[25] Kellner E, Oberlack C, Gerber JD, et al. Polycentric governance can compensate an incoherent regime under climate change: The case of multifunctional water use in Oberhasli, Switzerland. 2018.

[26] Shi D, Zhang C, Zhou B, et al. The true impacts of and influencing factors relating to carbon emissions rights trading: A comprehensive literature review. Chinese Journal of Urban and Environmental Studies, 2018, 6(3): 1850016.

[27] Chen L, Liu Y, Gao Y, et al. Carbon emission trading policy and carbon emission efficiency: An empirical analysis of China’s prefecture-level cities. Frontiers in Energy Research, 2021, 9: 793601.

[28] Zhang Y, Zhang Y, Sun Z. The impact of carbon emission trading policy on enterprise ESG performance: Evidence from China. Sustainability, 2023, 15(10): 8279.

[29] Zhu Y, Hu Y, Zhu Y. Can China’s energy policies achieve the “dual carbon” goal? A multi-dimensional analysis based on policy text tools. Environment, Development and Sustainability, 2024: 1-40.

[30] Irshaid J, Mochizuki J, Schinko T. Challenges to local innovation and implementation of low-carbon energy-transition measures: A tale of two Austrian regions. Energy Policy, 2021, 156: 112432.

[31] Wu R, Qin Z. Assessing market efficiency and liquidity: Evidence from China's emissions trading scheme pilots. Science of the Total Environment, 2021, 769: 144707.